Markets' unrealistic expectations

According to the FT, the markets are gambling on a Tory victory.

Is that really true? It seems to me that either markets are unbelievably stupid or they really aren't that affected by the outcome of the election.

All three major parties want to reduce the deficit. The question is only one of timing. I think that those who work in the financial markets who are commenting are just politicking rather than making a true statement about market sentiment.

Seeing the UK as a save haven is only sensible given the huge problems the Eurozone faces.